Consider the following budgeted data for a client job of Bob Crachit s accounting firm. The client wants a fixed-price quotation. Direct professional labor 20,000 Direct support labor 10,000 Fringe benefits for direct labor 13,000 Photocopying 2,000 Telephone calls 2,000 Computer equipment 6,000 Overhead is allocated at the rate of 100% of direct labor cost. A. Prepare a schedule of the budgeted total costs for the client. Show subtotals for total direct labor costs and total costs as a basis for markup. B. Assume that the partner s policy is to quote a fixed fee at 10% above the total costs. What fee would be quoted?
Consider the following budgeted data for a client job of Bob Crachit s accounting firm. The client wants a fixed-price quotation. Direct professional labor 20,000 Direct support labor 10,000 Fringe benefits for direct labor 13,000 Photocopying 2,000 Telephone calls 2,000 Computer equipment 6,000 Overhead is allocated at the rate of 100% of direct labor cost. A. Prepare a schedule of the budgeted total costs for the client. Show subtotals for total direct labor costs and total costs as a basis for markup. B. Assume that the partner s policy is to quote a fixed fee at 10% above the total costs. What fee would be quoted?
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:Consider the following budgeted data for a client job of Bob Crachit s accounting firm.
The client wants a fixed-price quotation.
Direct professional labor 20,000
Direct support labor 10,000
Fringe benefits for direct labor 13,000
Photocopying 2,000
Telephone calls 2,000
Computer equipment 6,000
Overhead is allocated at the rate of 100% of direct labor cost.
A. Prepare a schedule of the budgeted total costs for the client. Show subtotals for total
direct labor costs and total costs as a basis for markup.
B. Assume that the partner s policy is to quote a fixed fee at 10% above the total costs.
What fee would be quoted?
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